1. Field of the Invention
The present invention generally relates to a method and apparatus for metering electricity usage and processing associated information. More particularly, the present invention relates to a method and apparatus for remotely metering electricity usage at consumer sites and for providing consumers with metering information, billing information, and electronic payment options.
2. Description of the Related Art
Electricity may be produced, transmitted, and distributed by an electric power system. Typically, at generating plants, a fuel source (e.g., fossil fuel, nuclear, falling water, and the like) is used to turn the rotor (i.e. rotating magnet) of a generator inside the stator (i.e. stationary coils of wire) of the generator to produce electricity. A transmission system and a distribution system then carry the generated electricity from the generating plants to homes, businesses, factories, and the like, where electricity is consumed. Power transformers may be used to: increase the voltage of the electricity prior to transmitting it on the transmission system from the generating plant; reduce the voltage of the electricity delivered from the transmission system to the distribution system; and connect together parts of the transmission and distribution systems which may operate at different voltages.
The transmission system for carrying electricity may include a vast network of transmission lines connected together to facilitate transmission of electricity across vast geographic distances. For example, in the United States, transmission lines are connected into one of three interconnected transmission grids. The Eastern grid includes transmission lines from the Eastern Seaboard of the United States to the Rocky Mountain states. The Western grid includes the Pacific Coast and Mountain states. The Texas grid operates entirely within that state.
As the various grids in the United States are interconnected, electricity can be generated in one area of the country and transmitted to another area of the country to ensure reliable electric service and more efficient use of electricity. For example, the demand for electricity during the summer months are typically higher in the southwestern region, such as in southern California and Arizona, than in the northwestern region, such as in Washington and Oregon. Consequently, electricity generated in states such as Washington and Oregon may be transmitted through the grids to higher demand states such as California and Arizona. In this manner, a wholesale (or bulk power) market has developed whereby electricity may be sold and purchased (or traded) through the grid before being sold to ultimate consumers.
For a century, the electric power industry in the United States has been highly regulated by federal, state, and local regulatory commissions. At the state level, public utility commissions have had regulatory authority over a variety of areas, including rates, accounting records, service standards, and service area conditions and boundaries.
At the federal level, the Federal Energy Regulatory Commission (FERC), an independent agency of the Department of Energy, has been responsible for regulating interstate electric rates and services. Additionally, the Nuclear Regulatory Commission (NRC) regulates the nuclear power industry, and the Environmental Protection Agency (EPA) grants permits for nearly all energy production facilities.
Due largely to the highly regulated nature of the industry, a small number of public agencies and privately owned companies known as electric utilities acting as virtual monopolies dominated the electric power industry. Investor (or Privately) Owned Utilities (IOUs) are private entities which are regulated by State and Federal government and earn a return for investors. Federally owned utilities, such as the Tennessee Value Authority (TVA), generate power but operate on a non-profit bases. Other utilities publicly owned by state and local government agencies also operate on a non-profit bases. Cooperatively owned utilities are owned by members (small rural farms and communities) and provide service mostly to members only.
Recently, however, a movement toward de-regulation of the electric power industry is providing tremendous entrepreneurial opportunities to delivery energy to consumers in new and innovative ways. Consequently, an ever increasing number of energy consumers are being provided with unprecedented opportunities to reduce their energy costs. Upstart energy firms, such as New Energy Ventures of Los Angeles, Calif., are providing power to energy consumers at rates lower than those generally available from local electric utilities by aggregating their consumer's energy buying power through an electricity buyers' consortium.
In addition to buying electricity at a lower rate, energy consumers may attempt to further reduce their energy costs by optimizing their energy consumption. Conventional methods of metering and billing electricity consumption, however, have many shortcomings which hinder the ability of consumers to optimize their energy purchasing and consumption decisions.
In one conventional method of metering and billing for electricity consumption, an electricity meter is manually read. An electricity meter is an electromagnetic device which measures the amount of energy transferred from the electricity supply to the consumer. Every few months, the electric meter is read by an inspector, or meter-reader, who goes to the consumer's meter and records the current reading. The old reading is subtracted from the current reading and the consumer is billed for the energy suppled for that period. A bill is then mailed to the consumer showing the amount of electricity used and amount due. This manual inspection of meters is labor and time intensive. Additionally, consumers are provided limited and untimely information as the electricity bill may be received by a consumer months after the actual costs have been incurred.